Philippine shares declined on Tuesday as investor sentiment turned sour due to escalating tensions in the Middle East, which led to higher global oil prices. The Philippine Stock Exchange index (PSEi) fell by 0.15% or 9.70 points to close at 6,256.02, while the broader all shares index dropped by 0.09% or 3.29 points to end at 3,379.94.
Investors remained cautious amid the ongoing US-Iran conflict and renewed gains in oil prices, which weighed on market sentiment. Traders largely stayed on the sidelines, resulting in thin volume for the session, as they awaited further geopolitical developments before taking significant positions.
The local market's sideways movement ended in the negative territory as worries over the US-Iran tensions and their upward effect on global oil prices continued to weigh on investors' sentiment. Trading was tepid, with many investors staying on the sidelines amid the downside risks brought by the Middle East conflict.
Global markets experienced volatility, with stocks yo-yoing between gains and losses, while oil hit a one-month high in Asian trading on Tuesday. The surge in oil prices was triggered by a statement from a US official, which heightened concerns over the Middle East conflict.
Brent crude futures climbed 2.6% to $85.49 a barrel after earlier hitting their highest since mid-June at $85.64. Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%, as a rebound for South Korean shares offset declines in Taiwan.
Sectoral indices ended mixed on Tuesday, with mining and oil rising by 1.3% or 184.88 points to 14,404.56, while services and industrials also saw gains. However, holding firms, property, and financials declined, with the former dropping by 0.84% or 36.88 points to 4,341.33.
Decliners outnumbered advancers, with 109 stocks falling compared to 82 that rose, while 49 names remained unchanged. Emperador, Inc. was the top performer, climbing 1.55% to P15.70, while JG Summit Holdings, Inc. was the main index laggard, falling 3.19% to P24.30.
The value turnover decreased to P5.28 billion on Tuesday, with 673.92 million shares traded, compared to the previous session. Net foreign buying was at P229.80 million, marking a turnaround from the net selling recorded in the previous session.
